MoneyWeek’s comprehensive guide to this week’s share tips
Three to buy
Bunzl
The Telegraph
Bunzl is a manufacturer of packaging, hygiene equipment and personal-protection items that does business in 31 countries. The firm has been able to pass on rising costs to customers while optimising operational efficiency by consolidating its warehouse space and increasing automation. Bunzl deploys a successful “growth through acquisition” strategy, having acquired four companies last year. A price/earnings (p/e) ratio of 19 and yield of 1.9% aren’t cheap, but earnings and dividends have grown strongly for many years. 3,065p
Games Workshop
Investors’ Chronicle
Demand for this firm’s cult tabletop games, figurines, and video games remains strong, despite recent supply-chain problems. The company has a fanatical fan base, which powers strong sales and growing royalty income. In the six months to November, royalties doubled to £20.1m. Before encountering supply-chain issues (which are now easing), the company reported sales of £353.2m for the financial year to May 2021, up by 38% from 2019’s prepandemic high. 7,600p
Wickes
The Sunday Times
This DIY and garden retailer has been trading at a significant discount compared with rivals. The chain “has always been value focused”, which suits the current environment, and its customers are skewed towards older and wealthier homeowners who are more likely to weather rising inflation and coming financial pressures. The shares are up 15% in the last month, but remain cheap at around six times expected earnings for this year. 201p